Self funding v Student loan, Uni 2019

[Shimy]

As the title says; Is there anyone here whose DC will not be getting a student loan to finance their maintenance but will be self funding? Dh has suddenly announced dc will not be getting a loan as he doesn't want him having hefty debt when he graduates. Does this make sense? does the loan process in itself not activate the payment of the student's tuition fees?

Not for long! It's all about to change

I doubt the Augur review will reduce access to maintenance loans, even for those with low tariff scores. And the RAB charge won't change by definition.

I didn't mean specifically maintenance loans titchy but fees and repayment plans, particularly as we start to look to graduate or employer tax systems. Changes to accounting wont affect RAB in any real way no, but if HE funding is to count as a true cost going forwards, then it's all to play for in the spending review.

Persuade your dh to start thinking about it as a tax on graduates who earn above the amount they start repayments, and remove the word 'loan' from his thinking, as it doesn't work like any other normal loan.

I am very, very cautious about debt - absolutely brought up to avoid debt whenever possible - of the school of thought that if you haven't been able to save up for things, then you don't have them (mortgage aside), but even I am more than happy with the idea of people who have benefited from an extra 3 or 4 years of education, contributing more back to society once they are earning above a certain amount.

As had been pointed out, your repayments are based on your earnings, not the amount you owe.

I don't think 9% of what one earns is favourable! - but it's 9% of what you earn over £25,000 per annum, not 9% of everything you earn.

If you're subsequently a high earner, be happy!